IDEAS home Printed from https://ideas.repec.org/p/hhs/hastef/0107.html
   My bibliography  Save this paper

Delegation as at threat in bargaining

Author

Listed:
  • Segendorff, Björn

    (Department of Economics)

Abstract

in a bargaining game over the provision of a public good, two principals appoint one agent each to carry out the bargaining. Each agent has preferences over the outcome. Two institutional set-ups are studied, each with a different level of authority given to the agents. By authority is here meant the right to decide the own side's provision if negotiations break down. In equilibrium both principals choose agents with preferences differing from their own. The low-authority equilibrium Pareto dominates (with regard to the principals) the case of no bargaining (autarchy), but at least one of the principals is worse off compared to bargaining without delegation. The high-authority equilibrium is Pareto dominated by the low-authority equilibrium and it may even be dominated by autarchy.

Suggested Citation

  • Segendorff, Björn, 1996. "Delegation as at threat in bargaining," SSE/EFI Working Paper Series in Economics and Finance 107, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0107
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    Strategic delegation; Nash bargaining solution;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:hastef:0107. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Helena Lundin (email available below). General contact details of provider: https://edirc.repec.org/data/erhhsse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.